Evaluation of mineral

resources and ore reserves

Prof. Xavier Emery
Department of Mining Engineering
Advanced Mining Technology Center
University of Chile

Outline
Introduction
Sampling for resources and reserves evaluation
Modeling of geological heterogeneity
Reporting of mineral resources and ore reserves

Introduction
Geological, in-sight or mineral resource: concentration of material of
economic interest in the subsoil
Ore reserve: fraction of the resources that is technically and economically
minable.

Introduction
Why do we need to evaluate resources and reserves?

public report
selection of a mining method
mine design
mine planning
economic appraisal of a mining project
production: selection between ore and waste

Introduction
What should we pay attention to when evaluating an ore body?
How much: what are the concentrations of elements of interest, rock
density, mineralogical and metallurgical properties?
Where: how are these properties distributed in space?
What is the uncertainty associated with the evaluation?

Introduction
Evaluation of resources and reserves: a multi-disciplinary problem

Geology

Sampling

Mathematical
modeling

Sampling for evaluation of

resources and reserves

Motivation
Working hypotheses
The samples are correct
Their values can be used
without uncertainty

Samples

Calculation of
resources
Mine design and
planning

Practice
There exist errors in the
preparation and analysis of
the samples

Calculation of
reserves
If the samples are
poor, the project
may fail

Investment

Sampling for exploration

Sampling of outcrops
Sampling of channels and trenches
Drill hole sampling within zones of interest

Sampling of outcrops

Sampling of trenches

Drill hole sampling (DDH)

Diamond drilling
Recovery of rock cores
Easier geological interpretation

Performance: approx. 40 - 80 m/day

Cost: approx. US$100 / m

Drill hole sampling (RC)

Reverse circulation drilling
Used for in-fill
Recovery of debris
Larger risk of contamination and losses

Performance: approx. 50 - 150 m/day

Cost: approx. US$30 / m

Sampling for production

Sampling of blast holes

Sampling of underground works

Blast hole sampling

Sampling of underground works

Sampling protocol
40 kg

Reverse circulation sample

(1 m @ 1 cm)

20 kg

Riffle divider

Field

20 kg

Crusher
(-3 mm)

Rotary divider

Sample
preparation
laboratory
1 kg

Sample
(1 kg)
Pulverizer
(-150#)

250 g

1g

Sample
(1 g Cu
50 g Au)

Sample
(250 g)

R4

R3
Chemical
laboratory

R2

R1

Primary
rejection

Summary of sampling errors

Optimizing the
sampling protocol

Fundamental error
Segregation and grouping error

Implementing the
sampling protocol

Delimitation error
Extraction error

Contamination
Preserving the
integrity of samples

Analytical error

Losses
Preparation error

Alteration
Human error
Fraud

Fundamental error
Ore

Cause: Constitution heterogeneity

Waste
Corresponds to the minimal sampling
error that would be obtained if the
fragments were selected randomly, one
at a time.
The error variance can be calculated
thanks to Pierre Gys formula.

Debris
~ 1 ton.

Bag
~ 40 kg.

Laboratory
~ 1 gr.

Segregation and grouping error

Cause: distribution heterogeneity
Corresponds to an additional error
caused by the fact that, in practice, the
samples are not collected by randomly
selecting one fragment at a time.
This error can be avoided or decreased
in the following ways:
Optimizing the fundamental error (sample
weight)
Increasing the number of increments to
collect the sample
Homogenizing the material before taking
increments

Same fragments distributed

differently

Delimitation error
Sampling with tubes

Correct delimitation
Incorrect delimitation

Extraction error
This error is produced when
deviating from the gravity center
rule, which states that:
If the gravity center of the fragment is
inside the theoretical delimitation
volume, this fragment should belong
to the increment.
Otherwise, the fragment should be
rejected.

Preparation error
Contamination error
Dust
Wedding rings of operators

Error by losses

Error by alteration
Mineral dehydration loss of water
Sublimation of iodine and mercury

Sample loss
due to
faulty
operation

Preparation error
Human error
Wrong identification of samples
Clumsiness of operator
Error in certificates

Fraud or sabotage

Put some gold in

these samples

Modeling geological heterogeneity

Aims and scope

Using the information obtained from sampling, it is necessary to model the
geological heterogeneity in order to determine the spatial distribution of
the resources in the subsoil:
Geological properties: rock types, mineral types, alteration types
Geochemical properties: grades of elements of interest (Cu, Mo, Au, Ag) and of
contaminants (As, Pb)
Petrophysical properties: hardness, specific gravity, granulometry
Geo-metallurgical properties: acid consumption, solubility, metal recovery

To reach this objective, one can use:

Geological knowledge and geological interpretation
Geostatistical models

This is a prolific research area to develop new geostatistical tools and

models.

Modeling rock types

Interpretation of rock type domains: porphyry - shale

Modeling rock types

Quantification of geological uncertainty
Generation of outcomes (realizations) through geostatistical simulation
techniques.
Each realization reproduces the geological variability as well as the
available information at drill hole locations.
The set of realizations allows quantifying uncertainty: which rock type may
prevail at given locations? with which probability?

Modeling rock types

Example 1: copper deposit in Chile (plan view)

Modeling rock types

Example 2: iron deposit in Brazil (two cross-sections)

Modeling grades
Grade model obtained using a geostatistical prediction method (kriging)

Modeling grades
Uncertainty in grade: generation of outcomes (realizations) that reproduce
the spatial variability of grades via geostatistical simulation

Example 1: copper grade in a porphyry copper deposit

Modeling grades
Example 2: rock type, iron grade, silica grade, phosphorus grade, alumina
grade, manganese grade, loss on ignition and granulometric fraction above
6.3mm in an iron deposit

Modeling grades
Use of simulated models
uncertainty in grades, tonnages and metal contents
probability that grade exceeds or falls short of a cut-off in a given sector
risk of not fulfilling a production schedule
uncertainty in cash flows and NPV
etc.

Average of 100 realizations

Kriging

Reporting mineral resources

and ore reserves

Reporting resources and reserves

The reporting of resources and reserves distinguishes several categories:
Mineral resources are subdivided, in increasing order of confidence, into inferred, indicated
and measured
Ore reserves are subdivided, in increasing order of confidence, into probable and proved

Reporting resources and reserves

There exist several international codes to guide the classification:
Australian code: JORC (2012)

Canadian codes: CIM Guidelines (1996), NI 43-101 (2001)

USA code: USGS circular 531 (1980), SME

South-African code: SAMREC (2007)

United Nations code (UNFC)
Russian code
Chinese code
Chilean code (2003)

Reporting resources and reserves

Standards for reporting resources and reserves
Transparence: clear, unambiguous terminology
Materiality: based on relevant and fundamental information
Competence: information provided by qualified and competent
professionals
Impartiality

Reporting resources and reserves

Example: measured, indicated and inferred resources

Acknowledgements
Department of Mining Engineering, University of Chile

Advanced Mining Technology Center, University of Chile

Advanced Laboratory for Geostatistical Supercomputing

Thanks!